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Jakarta Post

Bumpy road ahead for Indonesia’s ‘Silicon Valley’

The plan to develop Algorithm Hill, which its backers hope will be the Indonesian version of Silicon Valley in California, the United States, faces infrastructure challenges despite having secured an investment of Rp 18 trillion.

Dzulfiqar Fathur Rahman (The Jakarta Post)
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Jakarta/Sukabumi, West Java
Wed, April 28, 2021

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Bumpy road ahead for Indonesia’s ‘Silicon Valley’ The Cikidang plantation and resort, a 888-hectare plot nestled among the hills of Sukabumi, West Java, is pictured from afar on April 21. Politician Budiman Sudjamitko and businessman Dhanny Handoko are planning to develop the plot into Bukit Algoritma (Algorithm Hill), which they hope will be the 'Silicon Valley of Indonesia'. (JP/Dzulfiqar Fathur Rahman)

T

he road to the ambitiously planned Bukit Algoritma (Algorithm Hill) in Cikidang, Sukabumi, West Java, is bumpy and full of twists and turns. Some stretches, surrounded by palm oil plantations nearly 700 hectares across, can barely accommodate a car and a motorcycle at the same time.

The planned research and technology center, which seeks to emulate Silicon Valley in California, the United States, will be developed through a partnership involving Kiniku Bintang Raya. Rp 18 trillion (US$1.23 billion) has been invested for its first phase of development, which is expected to take three years.

In addition to the small and rocky roads, the 888 hectare plot on which the complex will be built is more than a two hour drive from Jakarta, the nation's business and finance hub. Solving this problem of connectivity hinges on the development of the second section of the 53.6 kilometer Bogor-Ciawi-Sukabumi (Bocimi) toll road.

“We will address all challenges,” Budiman Sudjatmiko, who initiated the Bukit Algoritma project, told The Jakarta Post on April 22. He said there were plans to develop 7 km of road to link the toll road to the complex. “We have anticipated everything, including the toll road, which is expected to be finished in August.”

Budiman, a politician from the ruling Indonesian Democratic Party of Struggle (PDI-P), is working with oil palm businessman Dhanny Handoko on the project. He recently formed a partnership with state-owned construction company PT Amarta Karya to help with the infrastructure.

The development of Bukit Algoritma, which began in 2018, comes as the COVID-19 pandemic speeds up the adoption of technology and consumers' move to digital platforms, including in the healthcare and education sectors, as a result of mobility restrictions.

Read also: Indonesia’s internet economy to grow more slowly but remain region’s biggest: Report

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